The Company tests goodwill and indefinite-lived intangible assets for impairment annually and between annual tests if impairment indicators are present. Such indicators may include, but are not limited to, significant changes in economic and competitive conditions, the impact of the economic environment on the Company’s customer base or its businesses, or a material negative change in its relationships with significant customers.

During the quarter ended September 30, 2024, the Company’s rotational molding reporting unit continued to experience further declining market conditions including overall lower volume and uncertainty regarding the reporting unit's longer range outlook, primarily due to the current macroeconomic environment reducing expected demand for its products. Due to these potential indicators of impairment identified during the quarter ended September 30, 2024, the Company conducted an interim quantitative impairment test of the goodwill at its rotational molding reporting unit and compared the reporting unit's fair value to its carrying value as required by ASC 350. The Company's quantitative analysis identified that the estimated fair value of the rotational molding reporting unit was below the carrying value and accordingly, the Company recorded a $22.0 million non-cash impairment charge, for the full carrying value of the goodwill associated with the rotational molding reporting unit. The goodwill impairment charge was recorded within Impairment charges in the Consolidated Statements of Operations.

The Company’s annual goodwill impairment assessment as of October 1 found no additional impairment at any of the Company's reporting units in 2024. Quantitative impairment assessments were performed for all reporting units in 2024, and they indicated that the fair value of the Company's seven reporting units all had adequate cushion above the carrying value on the assessment date, except for the rotational molding reporting unit, which was fully impaired as of September 30, 2024, as described above. The 2023 and 2022 annual goodwill impairment assessments performed as of October 1, also indicated no impairment for all of the Company's reporting units.

Fair value was determined using the income and market approaches. The income approach employs the discounted cash flow method reflecting projected cash flows expected to be generated by market participants and then adjusted for time value of money factors and requires management to make significant estimates and assumptions related to forecasts of future revenues, earnings before interest, taxes, depreciation, and amortization (EBITDA), and discount rates. The market approach utilizes an analysis of comparable publicly traded companies and requires management to make significant estimates and assumptions related to the forecasts of future revenues, EBITDA, and multiples that are applied to management’s forecasted revenues and EBITDA estimates.

The techniques used in the Company's impairment test have incorporated a number of assumptions that the Company believes to be reasonable and to reflect known market conditions at the interim impairment date. The variables and assumptions used, all of which are Level 3 fair value inputs, include the projections of future revenues and expenses, working capital, terminal values, discount rates and long-term growth rates. The estimate of the fair value, and the related goodwill, could change over time based on a variety of factors,

including the aggregate market value of the Company’s common stock, actual operating performance of the underlying businesses or the impact of future events on the cost of capital and the related discount rates used.

The circumstances leading to the interim goodwill assessment as described above also triggered an evaluation for long-lived assets, for which the Company has first performed an ASC 360-10-35 recoverability test of other long-lived assets, including intangible assets for the rotational molding asset group. With respect to the asset group, future cash flows were estimated over the expected remaining life of the assets, and the Company determined that, on an undiscounted basis, expected cash flows exceeded the carrying value of the asset group, and no impairment was indicated. There were no impairment indicators over long-lived assets for the quarter ended December 31, 2024.

The changes in the carrying amount of goodwill for the years ended December 31, 2024 and 2023 were as follows:


	Distribution		Material Handling			Total
January 1, 2023	$	14,730	$	80,427		$	95,157
Foreign currency translation		—		235			235
December 31, 2023	$	14,730	$	80,662		$	95,392
Acquisition		—		183,098			183,098
Impairment charges		—		(22,016	)		(22,016	)
Foreign currency translation		—		(942	)		(942	)
December 31, 2024	$	14,730	$	240,802		$	255,532

Intangible assets were established in connection with acquisitions. These intangible assets, other than goodwill and certain indefinite lived trade names, are amortized over their estimated useful lives. The Company performed a quantitative annual impairment assessment for the indefinite lived trade names as of October 1, 2024, 2023 and 2022. In performing these assessments, the Company determined the estimated fair value of the trade names exceeded the carrying value and accordingly, no impairment was indicated. An impairment charge would be recorded if the carrying value of the trade name exceeds the estimated fair value at the date of assessment. Refer to Note 3 for the intangible assets acquired through the Signature acquisition during 2024.

Intangible assets at December 31, 2024 and 2023 consisted of the following:


			2024							2023
	Weighted Average Remaining Useful Life (years)		Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Trade names - indefinite lived			$	31,382	$	—		$	31,382	$	9,782	$	—		$	9,782
Trade names		5.3		10,267		(4,658	)		5,609		10,267		(3,417	)		6,850
Customer relationships		9.7		157,880		(57,821	)		100,059		75,505		(48,790	)		26,715
Technology		10.9		56,280		(27,262	)		29,018		24,980		(23,713	)		1,267
Non-competition agreements		1.4		1,510		(1,257	)		253		1,510		(995	)		515
Patents		—		11,730		(11,730	)		—		11,730		(11,730	)		—
			$	269,049	$	(102,728	)	$	166,321	$	133,774	$	(88,645	)	$	45,129

Intangible amortization expense was $15.5 million, $6.6 million and $6.2 million in 2024, 2023 and 2022, respectively. Estimated annual amortization expense for intangible assets with finite lives for the next five years is: $14.9 million in 2025; $14.2 million in 2026; $13.9 million in 2027; $13.7 million in 2028 and $13.6 million in 2029.